House Energy Package Bad for Manufacturers and Consumers

WASHINGTON, DC – American Forest & Paper Association President & CEO Donna Harman expressed disappointment with the energy package passed by the U.S. House of Representatives last night. H.R. 6899 contains a flawed renewable energy portfolio standard (RPS) that will distort energy markets, increase energy prices, and ignores the contributions that existing renewable power generators are making to help improve energy independence and combat climate change.

“This bill misses the mark because it unavoidably leads to higher energy costs for businesses and consumers. At a time of economic uncertainty we need good answers on energy and this bill only leaves people with more questions”.

“The forest products industry is the largest industrial producer of renewable energy in the country, generating more than 60 percent of pulp and paper mills’ total energy demand from biomass. Still, purchased energy such as natural gas and electricity remains our third largest manufacturing cost and since 2000 the burden of high energy prices has been a factor in the shuttering of 267 mills and the loss of 189,000 jobs in our industry. This bill’s federal RPS would exacerbate these problems by setting an unreasonable mandate on utilities. They will only wind up passing on new, higher costs to their rate payers”.

“Furthermore, under the legislation, the renewable power generated at existing forest products facilities would not qualify for renewable energy credits in the same manner as new facilities. Any RPS that provides incentives for new power generation while disadvantaging existing generation creates economic distortion. It also disregards the 33 states that have already adopted RPS mandates or goals in response to their unique circumstances. The one-size-fits-all approach offered by H.R. 6899 would ignore these critical state and local factors”.

“We look forward to working with Congress to create a truly comprehensive energy policy that meets the needs of businesses and consumers in a sustainable way.”

Contributed by Charles Lardner of AF&PA News. September 17, 2008 News Release.

Debarking Requirement to be implemented January 1, 2009

Further information may come after October 20, 2008. Stay tuned to the NAWLA Bulletin and website for updates. NAWLA members may want to start limiting bark on a voluntary basis based upon the proposed ISPM 15 limitation.

NAW Executive Summit

NAW announces their Executive Summit for January in Washington DC NAWLA is a member of NAW, and wholesalers may attend this important meeting.

Distributor Success Stories: Profiting Despite the Difficult Economy
January 27-29, 2009
Washington, DC

For details and to register, log-on to:www.naw.org/es09.

The NAW Institute for Distribution Excellence is pleased to announce this new release: The Distributor Specialist: Customer Champion, Profit Generator! written by Frank E. Hurtte, founding partner of River Heights Consulting, and only available from NAW.
The Distributor Specialist: Customer Champion, Profit Generator! is the first book to focus entirely on the unique role of distributor specialist within a wholesale distribution company. By definition, the specialist is the distributor employee who supports the “front-line” sales team and other departments by playing a specific-usually product or technology related-role in the sales process. The specialist furnishes technical support, sales backup, marketing direction, and product management within a distributor organization.
This brand-new book takes wholesale distribution executives, managers, and specialists on a journey to look at the business results that specialists can help distributors achieve, potential pitfalls of utilizing specialists, and ways to build from scratch or strengthen a specialist-driven team. Relevant case studies straight from the trenches of wholesale distribution pepper each chapter to show distributors not only what needs to be done, but how to get started.
For more information, please log-on to: www.naw.org

30 Years of Extensive Research Put to Use; New CD from Purdue University
Dan Cassens, professor of Purdue University’s Forestry and Natural Resources, has released a new CD, Lumber from Hardwood Trees. It is packed with over 30 years of research and information compiled by Cassens’ and others like him.
Expected topics to be covered include understanding lumber, decay resistance, the production process, steam bending and many others. This CD also covers dozens of different species.
“People can use this information to learn the types of wood that best fit their needs and suppliers can use it as a tool to educate customers about appropriate wood types for projects,” Cassens stated.
The CD can be ordered from the Purdue Extension Education Store for $25.00 dollars. To purchase the CD, or for more information, please visit: www.extension.purdue.edu/store.

Softwood Export Council (SEC) News

NAWLA to offer Valuable Educational Webinars for FALL 2008

NAWLA, in conjunction with the NAWLA Education Committee, will provide members the opportunity to participate in any one or more of upcoming webinars to educate you and your employees on several topics. Go to www.nawla.org and view the Educational Programs / Webinars section for more information and the registration forms.

Date: Wed., Nov. 19        
How to Add 2% to Your Bottom Line Immediately!
Presenter: Chris Rader, Rader Solutions
Website: www.radersolutions.com
               
Date: Tues., Dec. 16        
The Four Personality Gears and How to Sell to Them
Presenter: James Olsen, President, Reality Sales Training, Inc.
Website: www.reality-salestraining.com

Sign up for a Webinar for only $89 per registrant (logged on computer).
For complete descriptions of each Webinar, registration and cancellation policies and for further general information, please visit NAWLA’s Website at www.nawla.org.

2008 NAWLA Wood Basics Course – Recap
September 8 – 11
Corvallis, OR

The NAWLA Wood Basics Course returned to the Pacific Northwest in 2008! The recent course took place in Corvallis, Oregon from September 8 –11 and once again had solid attendance with 33 students. According to attendee comments and written evaluations, the course was “excellent.” Hear what our attendees are saying:

“Very organized and professional … Most sessions gave me immediate knowledge and information that I can take back and use in a real world situation. Great course for new people to the industry!”

“Being someone that the course is really not geared for (tax accountant) my expectations were “lukewarm” at best. I couldn’t’ have been more wrong. What a great course with top-notch presenters and unbelievable ‘field trips.’ I can’t wait to get back to my office and share the knowledge and stories with others in my company.”

“I have worked in this industry for three years and thought that I knew all I needed to know about lumber. I was wrong. This course helped me to understand terms and the industry. I have a new respect for the people at our plants and mills.”

The four-day program included a mix of classroom modules and off-site field trips. Modules on forest ecology and silviculture, lumber manufacturing, structural panels, engineered wood products, grading, Random Lengths marketing, sales and transportation were taught by over 12 industry experts, NAWLA Members and local academics from Oregon State University (OSU).

The signature, off-site tours were expanded to include a third excursion in the Willamette River Valley! Students began the week with a tour of nearby Starker Forest Lands & Education Center in Philomath. The tour included a peek at a harvesting operation (off-trail), ¼ mile hike (on-trail) and species identification. For further information on Starker Forest Lands, please visit www.starkerforests.com

On Wednesday, students journeyed to Eugene to see Zip-O-Log Mills – a “specialty timbers” sawmill that produces 100 percent Douglas Fir products, including 52-footers. For further information on Zip-O-Log Mills, please visit www.zipolog.com

A final tour of Rosboro in Springfield afforded students a first-hand look at three operations – sawmill, plywood plant and engineered wood plant – all at one location. For further information on Rosboro, please visit www.rosboro.com

Congratulations go out to the graduates of the Corvallis Class of 2008! For photos from the week, please visit www.nawla.org/education/seminar.asp

For information on future NAWLA Wood Basics, please contact Stacey M. Woldt, CMP at swoldt@nawla.org or at (847) 870-7470 or (800) 527-8258.

The Countdown Begins! NAWLA Traders Market®
November 6-8, 2008 • Chicago, IL
Hyatt Regency Chicago On The Riverwalk

We’re in the “home stretch” for THE industry event of the year … but there is still time for you to join us in Chicago. At only $399 / person (NAWLA Member), this NAWLA Traders Market® is “a steal” for sure. You better move “quickly” and register now at one of the below links:

For NAWLA Members
http://www.nawla.org/pdf/WebsiteONLYCOLORMbrRegform08.pdf [imbed link in “For NAWLA Members”]

For NAWLA Non-members
http://www.nawla.org/pdf/WebsiteONLYCOLORNon-MbrRegform08.pdf [imbed link in “For NAWLA Non-members”]

We’ve got it all in 2008! From an NFL Celebrity to a CNBC Contributor to complimentary tours of the Chicago Board of Trade and CME Group, along with global perspectives on the lumber market, this will be one of the best Traders Markets NAWLA has yet to offer.  

Check out our Schedule “Snapshot.”

For further information on NAWLA Speakers, please click here.
http://www.nawla.org/meetings/tradersmarket/speakers/ [imbed hyperlink in “click here”]

Looking into branching out your company products beyond the US boarders? NAWLA is here to help! NAWLA offers great opportunities to explore this option. If interested, please join us and a couple of great speakers at the NAWLA Magellan Club Luncheon and program at the NAWLA Traders Market® on Thursday, November 6th. Advance purchase tickets are required. Get your tickets by calling NAWLA at (800) 527-8258 or info@nawla.org.

NAWLA University of Industrial Distribution (UID)
December 2-5, 2008 • Indianapolis, IN

You’ve probably heard that the 2008 NAWLA University Industrial Distribution (UID) program recently held in Indianapolis was “busting out of the seams” with more than 600 attendees. In fact, the Spring program completely “sold out” over one month prior.

Back by popular demand, NAWLA will hold a second UID this December and in conjunction with the AEA – Association Education Alliance. Space is limited to 250 attendees. Don’t hesitate! Register now to secure your seat and reap the following benefits of the NAWLA UID:

• 20 different sessions over 4 days
• Concentrated educational sessions focused on the unique needs of the wholesale distribution industry
• Networking with professionals from more than 40 fellow associations in distribution and wholesale (AEA – Association Education Alliance)
• More than 15 professional instructors from distribution, sales management, personnel productivity, leadership, negotiation, purchasing and more
• Credits for Coursework! – Coursework can also be applied toward the Professional Certificate in Industrial Distribution as awarded by Purdue University.
• Several tracks catering to different participant levels of experience – As your experience level grows, you may attend higher tracks!

Registering is easy on NAWLA’s Website.
http://www.nawla.org/pdf/UID-ProgBrochDec2008_NAWLA-web1.pdf

For further information, please contact NAWLA at info@nawla.org or at (847) 870-7470 or (800) 527-8258.

Welcome NAWLA’s newest members for the month of September.

William Adams
Individual Membership
168 Clover Bank Rd.
Charlotte, NC  28115
Phone: 704-896-3917
Fax: 704-896-3917
Verifiers:
Susan Fitzsimmons, Snavely Forest Products
Mike Sims, LP Wholesaler

Paul Bouchard
Bouchard Projects Ltd.
P.O. Box 1029
Penticton, BC  V2A 6J9
Phone: 250-493-9339
Fax: 250-493-1218
www.bpwood.com
Verifiers:
Terry Hagen, IWP
Bill Barnett, Marathon Forest Products
Kip Fotheringham, Welco
Bouchard Projects both manufacture and distribute our own wood products and wholesale/supply chain manage products of other manufacturers in North America and Asia.

Manufacturer
Howard Ashdown
Brown & Rutherford Co. Ltd.
5 Sutherland Ave.
Winnepeg, MB   R2W 3B6
Phone: 204-942-0701
Fax: 204-956-1993
www.brownandrutherford.com
Verifiers:
Ted Smith, Gilbert Smith Forest Products
David Charpentier, Midwest Lumber Stillwater
Brown & Rutherford is a well established, privately owned reman plant in Winnipeg, Manitoba.  We specialize in cedar, pine, and fir to service eastern Canada and the US Midwest.

Manufacturer
Doug Calvert
Calvert Co., Inc.
218 V St.
Vancouver, WA  98661
Phone: 360-693-0971
Fax: 360-693-3389
www.calvertglulam.com
Verifiers:
Mike St. John, Pacific Woodtech
Garry Tabor, BMD, Inc.
Calvert Co. manufactures glued laminated bean and arches.  We have been in business since 1947.

Manufacturer
Peter McKibbin
Contact Industries
9200 S.E. Sunnybrook Blvd. Ste. 200
Clackamas, OR  97015
Phone: 800-345-2232
Fax: 503-221-1340
www.contactind.com
Verifiers:
Peter Hall, Lumber Products
Brad Hart, OrePac
Founded in 1946, Contact Industries is an ISO 9000: 2000 Certified company. They are a diversified wood product veneer component organization to a wide variety of industries.

Manufacturer
David Brandenburg
Cox Industries, Inc.
P.O. Box 1124
Orangeburg, SC  29116
Phone: 800-476-4401
Fax: 803-534-6328
www.coxwood.com
Verifiers:
Roy Carroll, Angus Forest Products
Pam Mitchell, Arch Wood Protection
Cox Industries is a family owned business, wood preserving company in business since 1954.  Cox has twelve manufacturing facilities from Alabama to Virginia with a residential division serving retail accounts and industrial plants selling poles and pilings.

Manufacturer
Ken Shields
Conifex Inc.
Suite 2200-925 West Georgia St.
Vancouver, BC  V6C 3C2
Phone: 604-659-8350
Fax: 604-659-8399
www.conifex.com
Verifiers:
Kip Fotheringham, Welco
Bill Barnett, Marathon Forest Products
Conifex operates in Fort St. James which is largely outside the Pine Beetle affected area of British Columbia.  Their annual production is approx. 275,000,000 FBM of high quality SPF which includes 70,000,000 FBM of MSR lumber.

Wholesaler
Matt McCoun
Deschutes Pine Sales
P.O. Box 1243
Bend, OR  97702
Phone: 800-547-5660
Fax: 541-382-6131
Verifiers:
Bruce Daucsavage, Ochoco Lumber
Art Andrews, Ochoco Lumber
Scott Hill, Plateau Forest Products Deschutes Pine Sales is a Wholesaler distributor and remanufacturer of softwood and hardwood lumber active in both domestic and international markets.  They specialize in mixed truckloads of west coast woods combining both Hardwood and Softwood. Service Affiliate

Cathy Spencer
Mallory Alexander International Logistics;
P.O. Box 2701
Bismarck, ND  58502
Phone: 701-255-6700
Fax: 701-223-6379
www.mallorygroup.com
Verifiers:
Bart Bartholomew, M.F.P. of Oregon
With over 80 years of freight forwarding experience, Mallory Alexander can provide international and domestic transportation solutions.  Their new transload facility in Bismarck, ND, offers access to both BNSF and CP, Includes 14 railcar spots and a 4.5 acre secure storage yard. Wholesaler

Dan Plouffe
National Forest Products Ltd.
291 Boler Rd.
London, ON  N6K 2J9
Phone: 519-474-0600
Fax: 519-474-0165
www.nationalforestproducts.com
Verifiers:
Richard Allen, Central Cedar
Chris Beveridge, Skana Forest Products
Jim McGinnis, The McGinnis Lumber
National Forest Products is a wholesaler, distributor & sometimes producer of softwood lumber selling retail & lumber specialty stores & window & door manufacturers across Canada & same in the U.S. Wholesaler

Dave Pollock
Pat Power Forest Products
2521 Kingsway Ave
Port Coquitlam, BC V3C 1T5
Phone: 604-941-6606
Fax: 604-941-6213
An office wholesaler, stocking distributor and exporter of timbers, siding, decking, pattern stock, paneling, fencing and numerous other products. Manufacturer

Scott Brown
SJS Components
6778 South State Rd. 13
Warsaw IN  46580
Phone: 260-578-0192
Fax: 260-839-5873
www.sjscomponents.com
Verifiers:
Gary Vitale, T.W. Hager
Matt Reedy, Roberts & Dubdahl
SJS Components is a manufacturer of structural insulated window and door headers with more than 30 years of experience in engineered wood.

Building Material Distributors Inc. (BMD) Receives Forest Stewardship Council Certification from the Rainforest Alliance.
Barbara Clare, BMD, (209) 730-5052

Galt, CA—Building Material Distributors Inc. (BMD) has earned Forest Stewardship Council (FSC) Chain-of-Custody certification from the Rainforest Alliance’s SmartWood program (SWCOC-003371). This certification will open up a new supply of engineered lumber from responsibly managed forests to help meet the growing demand of green building projects in the Western United States.

"BMD is proud to stock FSC Certified engineered lumber and happy to receive SmartWood certification as a wholesale distributor of quality, environmentally sensitive forest products,” said Bruce Garrett, Forest Products Division Manager for BMD, Inc. “This will further strengthen our affiliation with FSC certified companies such as Roseburg Forest Products, Jager Building Systems, and Roy O. Martin Company, in providing greener alternatives to our customers."

The FSC is the global standard-setter in responsible forest management. Chain-of-Custody certification guarantees that wood that comes from certified, responsibly managed forestlands is tracked throughout the supply chain, from the forest to the consumer. Conscientious consumers can look for the FSC logo on wood products to know they are supporting forest management that protects biodiversity and supports local communities.

For more information, visit www.rainforest-alliance.org, or for more information about BMD, visit their Website at bmdusa.com

CAPITAL WELCOMES TWO NEW MEMBERS!

NORTH PACIFIC AND ROYOMARTIN BAN TOGETHER TO MARKET FSC-CERTIFIED OSB IN NORTHERN CALIFORNIA

Portland, Oregon- RoyOMartin (Martco) and North Pacific announced September 9 that they were working together for a production and marketing plan. In this agreement, North Pacific’s Northern California distribution center will have Oriented Strand Board (OSB), certified by the FSC (Forestry Stewardship Council) from RoyOMartin’s OSB mill in Oakdale, Louisiana. These products contain no urea formaldehyde and are categorized as Low-Emitting Materials – Composite Wood under the Leadership in Energy and Environmental Design (LEED®) Green Building Rating System™. North Pacific’s distribution center will be stocking RoyOMartin’s FSC-certified Tuff Strand®, StrucWall, StructWall XL and The Grid® brands, ready for next-day delivery to dealers and distributors in the Northern California region.

RoyOMartin’s fully-automated OSB mill is one of the largest in the world, and one of the only mills producing FSC-certified OSB. RoyOMartin’s advantage lies in the fact they own the FSC-certified raw material from their forests and can control the entire process from the forest to their production facility. From there, the product has to be distributed through FSC chain-of-custody facilities to be in compliance with FSC standards. Forest Management certification ensures that landowners manage the forest to high standards covering social, environmental and economic issues.

“We, at RoyOMartin, made the decision to certify our timberlands and processes via FSC because we felt this was truly a third-party process with teeth,” commented Scott Poole, chief operating officer at RoyOMartin. “FSC provided an avenue that ensured our adherence to sustainability in growth and removals, social and environmental awareness in the landscapes in which we work and a sound economic foundation on which to build future landholdings and manufacturing opportunities.”

For more information on either company, please visit their Websites at the following links:
www.royomartin.com

Housing Economist Sees Market as Near Bottom

AF&PA Holds First-ever Biomass Workshop

Experts to Industry: More Research, Analysis and Policy-Tuning Required on Bioenergy to Realize Full Potential Without Market Disruptions

WASHINGTON, DC – Bioenergy is a complex issue which requires better, more comprehensive research and analysis if the country is to realize the full potential that domestically-produced bioenergy can bring to combating climate change and seeking energy independence without unnecessarily distorting the fiber markets that are so critical to AF&PA members’ ability to operate. 

That was the message from the economists, technology engineers, and policy experts who gathered at the invitation of AF&PA to participate in the Association’s first-ever bioenergy workshop, held Thursday, September 11, 2008 at AF&PA headquarters in Washington and attended by more than 100 Association members.

Summarized highlights of presenters include:

Rocky Goodnow, RISI Senior Timber Economist: Increases in demand for biomass will come from cellulosic biofuel, electricity, and pellets.  However, supply of biomass will also increase in response to market forces.  There will be upward pressures on wood prices but they will be partially constrained by the need for wood to compete with other forms of bioenergy and with wind and solar in the power area.

Bryce Stokes, Director of Research U.S. Forest Service Vegetation Unit: We will potentially be able to make better use of logging residues, first thinnings, fuel treatments, and urban wood wastes.  Silvicultural techniques will also progress.

Markku Karlsson, Senior Vice President of Technology, UPM-Kymmene: In Europe, changes are needed to prevent bioenergy demand from outstripping supply.  Changes would include new cultivation and harvesting technologies, more and better interdisciplinary research, and technological innovations to maximize energy yields in a way that brings added value to businesses.

John Cowie, Director of Technology Management & Development, Agenda 2020 Technology Alliance: Bioenergy presents opportunities for the forest products industry because higher output of biofuels per ton of feedstock can be achieved when the biorefinery and pulp mill are integrated.  Biorefineries generate considerable waste heat that can be put to good use by an associated pulp mill. 

Ben Geman, Senior Reporter, Energy & Environment Daily: With energy costs near historical highs, Congress is under significant pressure to enact energy reform legislation. However, with the November elections looming, Democrats and Republicans are loathe to hand the other side a victory. Therefore, it is highly unlikely that any major energy legislation will be passed this year.

As the nation’s largest producer of renewable biomass energy, producing more than 60 percent of its own energy onsite from biomass generated through our manufacturing processes, the forest products industry is well positioned to succeed in the bioenergy field in the right policy environment.  To help create the conditions for the forest product industry’s success, AF&PA is working closely with policymakers at the state and federal levels to ensure that emerging bioenergy policies are informed by current data accurately accounting for projected increases in biomass demand, and the ability of the nation's biomass resources to sustainably meet that demand.   

HIGHWAY TRUST FUND BILL PASSES SENATE

H.R. 6532, the bill to restore $8 billion to the Highway Trust Fund, was passed Wednesday night (September 10) by the Senate after some debate and with some technical amendments and subsequently was passed by the House of Representatives late Thursday under suspension of the rules with a voice vote.
The Bush administration has changed its mind and has now advocated for a quick passage of H.R. 6532 which would transfer the $8 billion from the General Fund into the Trust Fund (Notice, September 5). This is the exact amount transferred out of the Trust Fund earlier so in a sense, it is simply being returned. President Bush had previously threatened a veto if such legislation reached his desk but after Department of Transportation Secretary Mary Peters announced that the Trust Fund could go broke by the end of this month, the President reversed course. Earlier in the week, Senators Judd Gregg (R-NH) and Jim DeMint (R-SC) blocked the Senate legislation because of concerns that this might lead to other siphoning attempts. Senator Gregg commented that, “You don’t go into the General Fund and set a precedent. Once you get that flood gate open, there is no end to it. No end.”

Senator DeMint added, “Our nation’s highway funds have run out because Congress spent billions on earmarks and blocked energy exploration, which has needlessly raised the cost of gasoline.” NITL Notice, September 12, 2008 Page 4. Despite these objections, the Senate was able to reach an agreement with an amendment changing the legislation’s effective date to September 30th and sent it back to the House for final approval. Once there, the legislation easily passed with a voice vote and it is now headed to President Bush's desk for his signature.
Contributed by NITL Web Publication, Issue 72

HOUSE APPROVES ENDING MEXICAN TRUCK PROGRAM

The U.S. House of Representatives voted 395-18 to end the controversial cross-border trucking pilot program this week but it is unclear whether this will have any impact on the program continuing. The measure would terminate the Transportation Department’s cross-border demonstration project and prohibit the agency from granting new authority for Mexican trucks to operate beyond commercial zones on the border without express authorization by Congress.

The Federal Motor Carrier Safety Administration had announced its plan to continue the program last month (Notice August 8) even without congressional support. The pilot was supposed to last two years, ending this month, but the Bush administration decided to extend the program for another two years.
The legislation (H.R. 6630) to end the pilot program was sponsored by all four key Members of Congress on the House Transportation and Infrastructure Committee – Chairman Jim Oberstar (D-MN), Peter DeFazio (D-OR), Ranking Member John Mica (R-FL) and John Duncan (R-TN)-and had broad bipartisan support throughout the House. That said, currently there is no accompanying Senate companion legislation and President Bush has indicated that he would likely veto the bill if it hits his desk.

In anticipation of this fact, Chairman Jim Oberstar (D-MN) said this piece of legislation “will raise the public awareness, raise the public pressure on this administration to stand up for public safety and unfair trade.” He went on to say that “Maybe that will give us the means of including that legislation in a larger must pass bill the president must sign.”

House transportation leaders from the President’s own party were among the strongest supporters of the House bill. In a press release issued after the House vote, Transportation and Infrastructure Committee Republican minority leader John Mica (R-FL) said: “This bill puts the brakes on a program that was forced on the Bush Administration after President Clinton supported NAFTA provisions that required admitting Mexican trucks across our border. Although the program forced on the Bush Administration by a NAFTA panel reflected minimal compliance, it’s appropriate that Congress rejects the panel’s decision and protects U.S. interests on this issue.”
Groups such as the League and the US Chamber of Commerce have argued that the program is working, that all benchmarks have been met and that as part of NAFTA, the program is legal and necessary.
Contributed by NITL Web Publication, Issue 72

LEAGUE SAYS COURT ERRED IN PORTS' TRUCK PLAN

Arlington, VA – In two major actions before the United States Court of Appeals for the Ninth Circuit, The National Industrial Transportation League (NITL) told the court that it supports the motion by the American Trucking Associations (ATA) which seeks to stop the October 1, 2008 implementation date of the Clean Truck Program (CTP) approved by the Ports of Los Angeles and Long Beach.

Additionally the League is also seeking permission from this court to participate as an amicus curiae (friend of the court) on the merits of arguments which are in opposition to the CTP's truck concessionlicensing provisions. The CTP would in part retire the use of older, dirtier trucks and replace them with newer and cleaner vehicles by way of regulations on trucking practices in the ports through concession licensing agreements. In a letter dated September 16, 2008 to the court, the NITL said it supports the Emergency Motion by ATA which requests an injunction pending an appeal of a lower court decision which denied the trucking group's motion for a preliminary injunction. The NITL argued that the truck concession agreements would result in substantial adverse consequences for cargo owners (which comprise a large portion of NITL's members). By the ports' own commissioned analysis, the CTP would increase rates by some 80 percent in just the Port of Los Angeles which would ban owner-operator drivers. It also told the appellate court that the lower court judge erred in applying the use of a "Safety Exception" to preempt the application of federal law. In this instance, the NITL said the truck concession programs deal extensively with economic regulation of truck practices and this has little or no bearing on operational safety. In a separate filing before the same appellate body, the NITL asked to participate in an amicus brief setting forth arguments in support of the ATA complaint. While its interests are similar to ATA, the NITL said its members have a unique and distinct perspective as the majority of its members are comprised of shippers that own or control cargo moved by the truckers in the two ports.

The chief NITL argument is that the lower court's decision "…opens the door to the creation of a patchwork of new economic regulations at all major ports, undermining present uniformity and leading to potentially conflicting regulatory requirements."

Bruce Carlton, president of NITL, said following these filings that, "While the League is strongly in favor of the CTP to reduce emissions and foster a cleaner environment, the manner in which this program has been approached and applied by the two ports would create operational nightmares for not only southern California but for the rest of the nation without any assurances that they will achieve a cleaner and safer environment."

The League is an association of companies that conduct industrial and/or commercial shipping throughout the United States and internationally. Founded in 1907, the League is one of the oldest and largest associations representing some 700 member companies involved with the transport of all kinds of freight in domestic and international commerce.

-Contributed by Peter J. Gratti of the National Industrial Transportation League.

GE Ecomagination program courts home builders

Despite the soft housing market, General Electric has said its Ecomagination program for green builders has seen an increase in participants, and the conglomerate is moving forward to court more builders.

The GE Ecomagination Homebuilder Program was launched in May 2007 and aims to help builders and developers “design homes that are not only comfortable, but that result in the release of fewer household emissions and are more efficient in their energy consumption and indoor water consumption than industry-accepted average new homes.”

The program was launched in conjunction with Masco’s “Environments for Living” Certified Green program.

In a statement, Patrick McElhaney said that since its inception, various builders and developers have “committed to building more than 30,000 homes as part of the program. In a challenging economic market, energy-efficient building offers a competitive edge."

GE has made central to the program its “SmartCommand Enviro Monitor” a product that helps homeowners track current and historical energy and indoor water use, which it has promoted as part of the certification program. The Enviro Monitor also serves as a programmable thermostat.

Source: Home Channel News

Website: www.homechannelnews.com

Ten Things That Can Drive the Bottom Line in 2009

You have two options to make your business more profitable in 2009:  Increase revenue or decrease expenses.  We are less than 90 days away from the start of 2009 and you should start planning now.

I have compiled a list of the top ten items that I have recommended to my clients throughout the past year.  By focusing on each item you can improve your bottom line in 2009.

1. Increase your inventory by one turn If you increase your inventory by one turn, you will free up cash and you can use the additional money elsewhere.  Determine your turns by taking your COGS for the last 12 months divided by the average inventory value over the last 12 months.   For example, if your current 12 month average inventory value is $1 Million and your 12 Months COGS is $6 million, you currently have 6 turns.  If you take $6 million and divide by 7 your new inventory value will be $857,143.  This is $142,857 less inventory dollars than 6 turns.   Do not include special orders or direct shipments in this calculation.
2. Reduce Your Inventory Shrinkage A rule of thumb is to accrue one half percent of sales for shrinkage if you are working with split unit quantities.  This means that if your sales are $10 million on annual basis your inventory allowable inventory shrinkage is $50,000.  I say, “Baloney!”  This is too much.  If you are the inventory manager, shoot for one half of one percent of the inventory value.  With sophisticated software systems, cameras, and well trained employees, your inventory shrinkage should be much less.  If you are a distributor with some manufacturing, you can have a surplus if you slightly over compensate your raw materials inputs.
3. Implement Transparent Pricing On average I am seeing people achieve a 2% increase in margins implementing by raising margins on “C” and “D”: items.  My rule of thumb is to look at frequency, or number of times sold, as opposed to quantity sold.  My thesis is that the more times an item is sold, the more likely your customer or potential customer will know the selling price.
4. Implement Price Matrix Pricing Traditionally companies assign price levels to customers, based on volume, customer type or required level of service.  For example, if you have a roofer purchasing 90% of his product mix in your roofing category and he is on the lowest price level, move him to a higher price level on all other departments.  If you move his bottom 10% of items up 10% you will achieve approximately a 1% increase in gross margin.  On average, I am seeing a 1% increase by implementing this strategy.
5. Improve Employee Productivity One example may be where your delivery driver has to make one more run on a Friday afternoon.  Once it reaches 2:00 PM overtime pay kicks in.  Prior to the driver leaving the yard you ask him to move fast, take short-cuts, unload the material and hurry back to the yard; only to penalize his time for the week and risk his safety.  If the driver takes his time, he will be compensated with overtime.   Pay for performance and not for hours.  The industry is going this way.  I would not like to see you get caught with the nonperforming drivers in your market while your competitors attract the productivity people.
6. Manage Your Accounts Receivable Don’t just manage a relationship with your customer get in bed with your customer.  Understand more about their business then they do.  Constantly focus on reducing your DSO.  Every day that you reduce this number you create one day of cash flow.  Consider emailing or faxing invoices to reduce mail time and early payment incentives that make sense on the bottom line.
7. Use the Expense Input Rule Before Spending Money Here is the simplest decision that you can make as a manager.  If somebody asks you to pay for a trash dumpster and it will cost $100 per month and you are running at a 5% pretax EBITA#, then you will need to sell an additional $2,000 per month to pay for the dumpster or reduce your existing costs by $100. 
8. Employees See Expenses  If an employee makes a decision to create an expense, he should see this on a P&L.  If you have an employee that purchases a forklift for example, every month that employee should see all costs associated with the purchase prior to payments.
9. Sell More to Your Existing Customer Determine what products your customers are consuming, but buying elsewhere.  Rank your customers sales from highest to lowest, breaking down by sales and profit by departments.  Determine which products your existing customers are not purchasing from you.  Can you service the customer with the products and make a profit?  Also, should you stock any products that your customers are using, but buying elsewhere because you don’t stock?
10.  Move from a paper environment to a paperless environment.  You can move to a document imaging system to scan all of your documents, including Bills of Lading, AP Invoices, AP Checks, Purchase Order, Work Orders, Invoices, and other documents.  When you are searching for an item, these should all now be linked from the Bills of Lading to the Accounts Receivable payment. You can use your exiting software vendor or a third party product.  You must become more efficient in finding information.   One dealer that I spoke with recently said he saved one and half employees time from day one of implementing a document imaging system.  He also saved on postage by emailing singed copies of Work Orders.

In addition to looking at financials and reports in 2009, I recommend that you reconnect with your customers.  It cost many time more dollars to get a new customer than it takes to keep one.  You know the old saying, “The customer signs your paycheck.”

Sign up now for the next NAWLA Webinar “How to Add 2% to Your Bottom Line Immediately” to be held on Wednesday, November 19 at 11:00 AM CST/ Noon ET.

For further information and for a registration form, please visit NAWLA’s Website at www.nawla.org/education/rader.aspChris Rader is president of Rader Solutions, a consulting firm working exclusively in the Construction Supply Industry. Contact him at crader@radersolutions.com

COMBINATION LIFE / LONG-TERM CARE INSURANCE

Liquidity, Good Business Practices Are Keys to Survival

• Keep Business Banking and Business Negotiating Separate: Riedel recommended that builders not bank with the same institutions where they are about to negotiate contracts and loans. If those banks are owed money, he said, they can issue stop payments, bounce checks and take the balance on the builder’s accounts. The banks can also take the builder’s personal account, Riedel said.
• An Automatic Stay Could Preserve Cash: In a bankruptcy proceeding, an automatic stay gives the debtor protection from his creditors, subject to the oversight of the bankruptcy judge, and brings all of the debtor's assets and creditors into bankruptcy court, where the rights of all concerned can be balanced. This procedure can help builders preserve cash and increase liquidity, Riedel said.
• Don’t Jeopardize Personal Assets: Riedel recommended that builders determine what assets are exempt from being taken in a bankruptcy proceeding and only “dip into them” if they are 100% protected. Under federal law, retirement benefits are exempt and in many states, homesteads, jointly-owned property, annuities and insurance proceeds are exempt. But builders need to understand the bankruptcy laws in their states before they use these types of assets to bolster their business, he said. 

Keep Your Communication With Banks Open
Restructuring expert Troy Taylor of Algon Group in Atlanta urged builders to continue communicating with their banks and lenders, even though these discussions can be unpleasant. 
If builders are at the point where they think they are even remotely approaching a serious problem, they should “sit down with the bank and communicate,” he said. If need be, builders should bring along their legal and business teams to help in the discussions, he added.
“This is an unpleasant time for everybody,” Taylor said. “Builders are going to lose a lot of money and banks are going to lose a ton of money,” he said.
“Sitting down with your bankers and telling them you‘re not going to be able to pay them is not going to be a great conversation, which is one of the reasons why having a third party there will help a little bit to take some of the bullets,” Flowers said.
“The truth is, this is not pleasant stuff, and there is no way it’s going to be done without salt in the wounds,” he added.
Partnering for Profits: Will They Be There for You?

When stuff happens, it's your alliance partner that either will, or will not, be there for you. Hopefully when it "all hits the fan" you'll have made enough relationship bank deposits to allow you a withdrawal?

During times of calm, your alliance partner simply keeps things in motion but, what about in times of chaos? Make your relationship bank deposits now, and do it frequently. This way, your alliance partner will hopefully be there for you when you really need them. That day might be tomorrow.

Protect Business and Personal Assets
Riedel discussed several ways builders can protect their business and personal assets if they are facing financial distress and potential bankruptcy:

• Keep Business Banking and Business Negotiating Separate: Riedel recommended that builders not bank with the same institutions where they are about to negotiate contracts and loans. If those banks are owed money, he said, they can issue stop payments, bounce checks and take the balance on the builder’s accounts. The banks can also take the builder’s personal account, Riedel said.
• An Automatic Stay Could Preserve Cash: In a bankruptcy proceeding, an automatic stay gives the debtor protection from his creditors, subject to the oversight of the bankruptcy judge, and brings all of the debtor's assets and creditors into bankruptcy court, where the rights of all concerned can be balanced. This procedure can help builders preserve cash and increase liquidity, Riedel said.
• Don’t Jeopardize Personal Assets: Riedel recommended that builders determine what assets are exempt from being taken in a bankruptcy proceeding and only “dip into them” if they are 100% protected. Under federal law, retirement benefits are exempt and in many states, homesteads, jointly-owned property, annuities and insurance proceeds are exempt. But builders need to understand the bankruptcy laws in their states before they use these types of assets to bolster their business, he said. 

Keep Your Communication With Banks Open

Restructuring expert Troy Taylor of Algon Group in Atlanta urged builders to continue communicating with their banks and lenders, even though these discussions can be unpleasant. 
If builders are at the point where they think they are even remotely approaching a serious problem, they should “sit down with the bank and communicate,” he said. If need be, builders should bring along their legal and business teams to help in the discussions, he added.
“This is an unpleasant time for everybody,” Taylor said. “Builders are going to lose a lot of money and banks are going to lose a ton of money,” he said.
“Sitting down with your bankers and telling them you‘re not going to be able to pay them is not going to be a great conversation, which is one of the reasons why having a third party there will help a little bit to take some of the bullets,” Flowers said.
“The truth is, this is not pleasant stuff, and there is no way it’s going to be done without salt in the wounds,” he added.
Partnering for Profits: Will They Be There for You?

When stuff happens, it's your alliance partner that either will, or will not, be there for you. Hopefully when it "all hits the fan" you'll have made enough relationship bank deposits to allow you a withdrawal?

During times of calm, your alliance partner simply keeps things in motion but, what about in times of chaos? Make your relationship bank deposits now, and do it frequently. This way, your alliance partner will hopefully be there for you when you really need them. That day might be tomorrow.

Face it …You Can’t Motivate Your People

Managers often ask themselves, "How do you motivate people?"  Our answer is, “You don't.” When we delve below the surface, we have found that all effective managers share one thing in common: An ability to understand and focus on the inner motivations of themselves and of those around them. The key phrase here is "understand and focus on the inner motivations." In truth, managers cannot "motivate" others. Motivational speakers, incentive plans and contests do not essentially change performance. They all miss the mark because they deal with the external rather than "internal motivations." 

Of course, people want promotions.  They want the highest commissions they can receive.  And they do not want to be fired.  However, simply dangling these carrots does not create effective and consistently productive work. The true motivation that causes individuals to excel comes from within. 

It is this inner motivation which distinguishes the twenty percent of those who succeed in virtually every profession. Effective managers have to uncover whether someone has the inner motivations needed to succeed in a particular position.

What motivates managers and salespeople?
For starters, the most effective managers like to make decisions and take risks.  They are consistent and fair, they command respect from others, and they are good communicators. They are able to gather information and analyze it in reference to the company's present and future needs.  They know how to delegate projects.  And they encourage growth in others as well as themselves.

The most effective salespeople, on the other hand, possess very different qualities.  They are able to understand what other people are thinking and feeling.  They are motivated to turn others around to their point of view.  And they are able to bounce back from rejection and seize the next opportunity. Salespeople, unlike managers, want to be out there themselves, meeting prospects and clients, negotiating and closing deals. Added to this, some people are motivated by security, others want control, some are driven by accomplishment, others seek involvement, some want to belong and others want to develop.

Embracing on and acting upon this understanding of what motivates people (new hires or existing employees) is certainly more complicated to deal with than using a broad stroke, a “one-size fits all” approach. But how these motivations are responded to (or ignored) sets the tone for the entire organization. These motivations are hard to uncover, because often the individuals themselves are unaware of what motivates them.  For instance, while every successful salesperson is motivated by an internal need to persuade others, very few would say, "I want to sell, because I feel ten feet tall when someone else says 'yes' to me."  Yet, that is precisely what occurs in a successful sales process. 
It is these inner motivations, many of which we are not aware of, which impel us to action. The most effective managers we have worked with understand their own motivations so that they are better able to understand the motivations of those who they oversee.  And they know that if an individual does not possess the proper motivations required to perform successfully in a specific job, all the training and incentives in the world will not make that individual highly productive.

How do you identify these motivating forces?

There are three approaches to surfacing these factors:

1. Behavioral Based Interviewing: Perhaps the most difficult, it relies upon the expertise of the interviewer to elicit feedback from the applicant.  Using very specific and probing questions to get to these motivational forces, the most effective practitioners of this process have received extensive training in this approach and have had years of experience to refine their skills.

2. Personal Observation: When an individual is already on board as a member of the team, astute observers can simply pay attention to what motivation factors have the greatest impact on the individual.

3. Personality Assessment: A valid and legal personality test will routinely uncover this very important information so that it can be used to focus the new hire or existing employee appropriately.

Tapping into, understanding and focusing each individual's inner motivations is the surest way for managers to develop a productive work force.

Contributed by Herbert M. Greenberg, Ph.D., President and CEO of Caliper